CFDP 1511

In incomplete information environments with transferable utility, eﬀicient outcomes are generally implementable unless interim or ex post participation constraints are imposed on the problem. In this paper we show that linking a suﬀiciently large number of independent but possibly unrelated social decisions, a slightly perturbed Groves mechanism can implement an eﬀicient outcome with probability arbitrarily close to one, while respecting all participation, incentive and balanced budget constraints.